MILAN (Reuters) - Italy’s Massimo Zanetti Beverage said on Wednesday it had signed a deal to buy Portugal’s Cafes Nandi in a move to boost coffee production in the country.

The coffee roaster — which produces and sells many brands including Zegafredo, Boncafe and Kauai — said the Cafe Nandi acquisition would help it meet an increasing demand for coffee pods in Europe and expand its offer for restaurants and bars.

The company did not disclose financial details of the deal.

Pods are the fastest growing segment in the coffee sector, even in mature markets such as Italy and Portugal.

Last year Zanetti’s smaller rival illycaffe signed a deal with conglomerate JAB Holding to produce and sell coffee pods that work in Nestle’s Nespresso machines.